hendren global group
Source: http://www.retail-week.com/sectors/home-and-diy/analysis-the-diy-market-how-retailers-are-fighting-tough-conditions/5049655.article?blocktitle=In-Depth&contentID=5965
A depressed housing market, unseasonal weather and a shift in consumer spend mean the DIY market has shrunk. How can retailers fix the problems?
The Brits have long been considered a nation of DIY-lovers. In the mid-1990s TV shows such as Changing Rooms had as many as 10 million viewers glued to the box each week to discover the latest trends in wall stencilling and mosaic mirrors.
The obsession with beautifying homes lasted for years and led to the DIY market ballooning to £9.76bn by 2004, according to Verdict research.
However, last year that figure had shrunk to £7.54bn and the sector’s woes were reflected in B&Q owner Kingfisher’s first-quarter update last week.
Everything from the weather to the economy has been blamed, but is it really that consumers are falling out of love with DIY? And if so, what effect will this have on home improvement retailers?
Conlumino managing director Neil Saunders believes the DIY sector faces a “structural” challenge because consumer interest in it is waning. He says: “Consumers look unfavourably on DIY, either because they lack the skills to undertake various tasks or they simply lack the inclination to get involved.”
The ‘do-it-for-me’ (DFM) trend - where consumers hire tradesmen to carry out jobs for them - is gaining more traction.
In a note last week Cantor Fitzgerald analyst Kate Calvert highlighted that this presents a challenge for market leader Kingfisher, which suffered a first-quarter group like-for-like decline of 4.2%. That followed its first profit fall in five years for the 12 months to January 31.
Calvert says: “The structural issues that Kingfisher faces are real. In the UK, underlying DIY sales have been in decline over the last decade as there is a marked shift from DIY to DFM.”
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